As hiring heats up, more service-sector firms are ramping up employee referral programs, which reward workers for encouraging qualified external candidates to apply for jobs. According to recruiting software publisher Jobvite, 61% of its clients’ recruits come in through employee referrals, compared to 14% from online job boards.
Success stories: 21% of Accenture’s successful hires in 2012 were the result of the consulting firm’s referral program. At accounting firm Ernst & Young, 46% of 2012 new hires came through employee referrals, up from 28% a few years ago. Its goal for 2013 is 50%.
According to Jobvite, 43% of new employees hired through a referral program were on the job three years later, compared to 14% for those who arrived via a job board.
- What's Working: 6 Hot Compensation & Benefits Best Practices
- Make sure written employment contracts exclude oral promises
- To the winner goes ... the loser's legal bill
- Tell managers: No talk of hiring preferences
- Be prepared to show business necessity if hiring rule excludes members of protected class